Apple Supplier Breaches Key Level On MicroLED Buzz

The $109.50 region has been supportive of OLED stock since last May

by Karee Venema

Published on Mar 19, 2018 at 2:33 PM

Shares of Universal Display Corporation (NASDAQ;OLED) have plunged 14.8% to trade at $105.70, after Bloomberg reported Apple Inc. (NASDAQ:AAPL) has been developing its own MicroLED screens -- a thinner and brighter option than the OLED displays the iPhone maker currently uses, and one that requires less battery power. Today's downside only exacerbates OLED stock's recent slide, with the shares now trading below a key technical level.

Specifically, since topping out at a record high of $209 back on Jan. 19, the shares of the Apple supplier have shed almost half their value. And while a late-February earnings-induced bear gap sent OLED tumbling below its 200-day moving average, today's drop has the security south of $109.50 -- a 61.8% Fibonacci retracement of its 2016 lows and 2018 highs, and a region that served as a floor last May through August.

oled stock daily chart march 19

In addition to fundamental headwinds, the stock has also been hit by stiff selling pressure from shorts. Although Universal Display is on the short-sale restricted list today, short interest shot 56.7% higher in the two most recent reporting periods to 4.84 million shares -- the most since last March. Given the equity's downtrend, it's not likely these bears are going to disturb their winning bets any time soon.

Analysts, on the other hand, have room to lower their outlooks on the struggling security. Four brokerages currently maintain a "buy" or better rating, compared to four "holds," and not a single "sell." Plus, the average 12-month price target of $181.67 stands at a 70.3% premium to OLED stock's current perch.

 


a schaeffer's exclusive

PLAY TRENDS LIKE A PRO!

5 tips to leverage profits in this FREE insider report!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.
Roller Coaster Week Defined by Trade Headlines, Jobs Report
The Dow made outsized moves in both directions this week
Needham is Buying Trade Desk Ahead of the 2020 Election
Trade Desk stock has more than doubled in 2019
The Trend Minting Millionaires -- But Who Is Really Paying?
Porter Stansberry is making a concerning prediction.